Managing Supply Chain

The main objective of supply chain management is to:

• Maximize production output

• Structure the supply chain to maximize competitive advantage and consumer benefit

• Minimize the number of suppliers

• Eliminate warehousing

Which of the following is NOT one of the six sourcing strategies?

• Many suppliers

• Joint ventures

• Virtual companies

• Franchising

Forward integration in supply chains means:

• Integrating with raw material suppliers

• Expanding toward customers

• Forming alliances with competitors

• Outsourcing production

Which of the following is an example of a reverse logistics activity?

• Packaging

• Order fulfillment

• Product recycling

• Forecasting

The objective of logistics management is:

• To maximize outsourcing

• To reduce facility costs only

• To obtain efficient operations in material acquisition, movement, and storage

• To eliminate customer service issues

A smartphone company faces high risk due to its reliance on a single supplier of microchips. Which sourcing strategy would reduce this risk?

• Many suppliers

• Few suppliers

• Vertical integration

• Postponement

A retailer delays product customization until customer orders are received. This is an example of:

• Drop shipping

• Postponement

• Standardization

• Blanket order

If a company increases the number of distribution centers nationwide, what is the likely result?

• Higher customer satisfaction, higher facility costs

• Lower customer satisfaction, lower costs

• No impact on cost and service

• Reduced flexibility

A shipment of frozen food is delayed at customs and spoils. Which type of risk is this?

• Currency risk

• Quality risk

• Logistics risk

• Political risk

A company partners with DHL for inventory storage, testing, and customs clearance. This is an example of:

• Vertical integration

• Third-party logistics (3PL)

• Keiretsu network

• 6. Joint venture